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Social Entrepreneurship
1 March 2018
Image from San Jose Entrepreneurship Centre
Entrepreneurship is …
Entrepreneurs buy at certain prices in the present and sell at uncertain prices in the future. The entrepreneur is the bearer of uncertainty
Richard Cantillon, c.1730
The entrepreneur shifts economic resources out of an area of low and into an area of higher productivity and greater yield.
JB Say, c. 1800
Entrepreneurs attempt to predict and act upon change within markets – Frank Knight, 1921
The entrepreneur is the innovator who implements change within markets through new combinations – Joseph Schumpeter, 1934
The creation of new organizations – Gartner, 1988
‘Entrepreneurship is the pursuit of opportunity beyond the resources you currently control.’
Howard Stevenson ‘The Heart of Entrepreneurship’, HBR March-April 85, pp85-94
Entrepreneurship needsRisk
Talent
Opportunity
Failure
Cash
Alliances
Story-telling
Image from Echoing Green
Social entrepreneurship is …
Not for profit?
Intentional?
Micro?
At scale?
System changing?
Better business?
Activism?
Social entrepreneurship
Is complex and over-determined
BUT
Has intentionality at the centre
Uses the mechanisms of business, activism, finance, philanthropy, volunteering to achieve pro-social outcomes
Something in the air
The circular economy
Zebras not Unicorns*
The Giving Pledge
B Corps
Social finance/impact investing
Effective Altruism
*https://medium.com/@sexandstartups/zebrasfix-c467e55f9d96
Zebras vs Unicorns
https://drive.google.com/file/d/0Byz2RjA4k1QpazQtQzl1bWpMdGM/view
Global Threats
Energy
Food
Water
Pandemic
Migration
Security
Etc
Opportunities
Materials science
Bio-engineering
Super computing
Data analytics
Mobile
Etc
Finance
More capital available
More financial instruments available
CASH EXCEEDS OPPORTUNITY
Social entrepreneurs
Link money and opportunity
Talent and technology
_______________________________________
Avoiding mistakes
Social entrepreneurship is hard, lonely work
Majoring on morality
Raising finance is very time-consuming
It’s easier to raise finance at the margin than the centre
Market signals are often weak
Opportunity recognition
Not all opportunities are alike
Opportunities have structural definition and established forces
Marketing platform development
Entrepreneurs in developing countries
# of entrepreneurs$ lend
$ repaid# dependents
Create jobs, reduce poverty
Borrower
Family of borrower
Well-off individuals who are socially
conscious
Service
Kiva.org
Repayment risk
Managing risk
Managing platform
Screening MFIs
Optional donations
Collecting loan capital
Proving loansKiva.org platform
Local MFIs
Payapl
Donor network
Brand
Financial ability to start business
Promote market based solutions to
povertyLocal microfinance institutions
Lean start-up
From Eric Ries & Steven Blank
Key concept: Minimum viable prototype
Build, Measure, Learn
Criticisms of social enterprise
Not successful enough?
Not precise enough?
Heroic individualism?Story telling?
Risks of disruption and failure where markets already failing?
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